Can you deduct interest paid on auto loan?

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Melba Ferry asked a question: Can you deduct interest paid on auto loan?
Asked By: Melba Ferry
Date created: Thu, Dec 10, 2020 7:45 AM
Date updated: Wed, Aug 17, 2022 5:07 PM

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Video answer: Tax benefits on car loan

Tax benefits on car loan

Top best answers to the question «Can you deduct interest paid on auto loan»

How do you calculate interest on a car payment?

  • Calculating the interest payments on your new car loan can be done by following a simple process. In order to calculate your interest payments over time, it is necessary to know the total amount of interest due on your loan. Begin by multiplying your loan's interest rate by the number of years you will be paying the loan off.

Video answer: New income tax deduction u/s 80eeb on car loan

New income tax deduction u/s 80eeb on car loan

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You could therefore deduct 33 percent of the interest you paid on your auto loan over the course of the year, as well as 33 percent of other auto-related expenses such as gasoline, maintenance and repairs.

You can deduct the interest paid on an auto loan as a business expense using one of two methods: the expense method or the standard mileage deduction when you file your taxes. But, writing off car loan interest as a business expense isn't as easy as just deciding you want to start itemizing your tax return when you file.

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Video answer: Personal loan deduction in income tax

Personal loan deduction in income tax